v3.26.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Summary of Estimate of Fair Value Differs From Carrying Amount

The following table presents the carrying amount and estimated fair value of the Company's financial instruments not measured at fair value as of September 30, 2026 and December 31, 2025 (in thousands):

 

 

 

 

September 30, 2026

 

 

December 31, 2025

 

 

Fair Value Hierarchy

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage and other financing receivables (1)

 

Level 3

 

$

339,417

 

 

$

322,530

 

 

$

383,935

 

 

$

392,222

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior unsecured notes

 

Level 2

 

$

7,183,333

 

 

$

6,502,516

 

 

$

6,859,458

 

 

$

6,550,537

 

Unsecured term loans

 

Level 3

 

$

859,759

 

 

$

860,129

 

 

$

859,272

 

 

$

860,685

 

Mortgages payable, net (3)

 

Level 3

 

$

428,929

 

 

$

412,717

 

 

$

467,203

 

 

$

455,214

 

 

(1)
The carrying value includes, and the fair value excludes, allowance for credit losses of $5.4 million as of both September 30, 2026 and December 31, 2025.
(2)
The carrying value includes, and the fair value excludes, deferred financing costs of $68.4 million and $62.5 million as of September 30, 2026 and December 31, 2025, respectively.
(3)
The carrying value includes, and the fair value excludes, deferred financing costs of $0.8 million as of both September 30, 2026 and December 31, 2025.
Summary of Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis

The tables below present the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2026 and December 31, 2025, aggregated by the level of the fair value hierarchy within which those measurements fall (in thousands):

 

 

Balance at
September 30, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

$

4,444

 

 

$

4,444

 

 

$

-

 

 

$

-

 

Interest rate swaps derivative assets

 

$

12,866

 

 

$

-

 

 

$

12,866

 

 

$

-

 

 

 

Balance at
 December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

$

2,649

 

 

$

2,649

 

 

$

-

 

 

$

-

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps derivative liabilities

 

$

8,570

 

 

$

-

 

 

$

8,570

 

 

$

-

 

Embedded derivative liability

 

$

5,440

 

 

$

-

 

 

$

-

 

 

$

5,440

 

Assets measured at fair value on a non-recurring basis at September 30, 2026 and December 31, 2025 were as follows (in thousands):

 

 

Balance at
 September 30, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Real estate

 

$

1,500

 

 

$

-

 

 

$

-

 

 

$

1,500

 

 

 

Balance at
 December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Real estate

 

$

9,718

 

 

$

-

 

 

$

-

 

 

$

9,718

 
Summary of Change in Fair Value of Embedded Derivative Liability

The table below summarizes the change in the fair value of the embedded derivative liability measured using Level 3 inputs for the nine months ended September 30, 2026 and 2025 (in thousands):

 

 

Nine Months Ended September 30,

 

 

2026

 

 

2025

 

Balance as of January 1,

 

$

5,440

 

 

$

19,864

 

Settlements

 

 

(5,440

)

 

 

(370

)

Change in fair value (included in Other income/(expense), net)

 

 

-

 

 

 

(1,770

)

Balance as of September 30,

 

$

-

 

 

$

17,724